From the 2017 year loans for agricultural producers will be provided at a reduced rate of 5%

From the 2017 year loans for agricultural producers will be provided at a reduced rate of 5%

Decree of the Government of the Russian Federation from December, 29 2016 № 1528 «On crediting of agricultural producers at a reduced rate» entered into force from 01.01.2017.

Beginning from 2017, subsidies will be provided to banks (participating in realization of modern tool of concessional lending for agricultural producers) for reimbursement of the shortfall in incomes in the amount of 100 % of the Bank of Russia key rate on loans at the rate of 5 %.

Borrower in the name of agricultural producer will independently choose authorized bank for receiving of the soft short-term loan (for a period up to 1 year including in an amount up to 1 RUB bn.) and (or) soft investment loan (for a period of 2-15 years for realization of one investment projects).

This Decree will improve the availability of the crediting for agricultural sector and to reduce the financial burden on agricultural producers.